[Federal Register: September 4, 1998 (Volume 63, Number 172)] [Notices] [Page 47333-47334] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr04se98-131] ======================================================================= ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 35-26913] Filings Under the Public Utility Holding Company Act of 1935, as Amended (``Act'') August 28, 1998. Notice is hereby given that the following filings) has/have been made with the Commission pursuant to provisions of the Act and rules promulgated under the Act. All interested persons are referred to the application(s) and/or declaration(s) for complete statements of the proposed transaction(s) summarized below. The application(s) and/or declaration(s) and any amendments is/are available for public inspection through the Commission's Office of Public Reference. Interested persons wishing to comment or request a hearing on the application(s) and/or declaration(s) should submit their views in writing by September 21, 1998, to the Secretary, Securities and Exchange Commission, Washington, D.C. 20549, and serve a copy on the relevant applicant(s) and/or declarant(s) at the address(es) specified below. Proof of service (by affidavit or, in case of an attorney at law, by certificate) should be filed with the request. Any request for hearing should identify specifically the issues of fact or law that are disputed. A person who so requests will be notified of any hearing, if ordered, and will receive a copy of any notice or order issued in the matter. After September 21, 1998, the application(s) and/or declaration(s), as filed or as amended, may be granted and/or permitted to become effective. New England Electric System, et al. (70-9397) New England Electric System (``NEES''), a registered holding company, and New England Power Company (``NEP''), a wholly owned subsidiary of NEES, have filed an application-declaration under sections 9(a), 10, and 12 of the Act and rules 43 and 44 under the Act. NEP proposes to buy back up to 5 million shares of its common stock from NEES, in one or more separate transactions through December 31, 2000, from the proceeds of the expected sales on September 1, 1998 of its nonnuclear generation business to USGen New England, Inc. (``Sale''). NEP will receive approximately $1.59 billion plus certain reimbursements (approximately $160 million) upon completion of the Sale. NEP states that it will use a portion of such proceeds to defease its mortgage bond obligations, to retire other debt and preferred stock of NEP, to pay state and Federal taxes, and to pay for other transactions associated with the divestiture. NEP proposes to reduce its common equity, through stock repurchases, in order to keep its capital structure balanced. Jersey Central Power & Light Company, et al. (70-7862) Jersey Central Power & Light Company (``JCP&L''), Metropolitan Edison Company (``Met-Ed'') and Pennsylvania Electric Company [[Page 47334]] (``Penelec''), all located at 2800 Pottsville Pike, Reading Pennsylvania 19605 (together, ``GPU Companies''), and each an electric utility subsidiary of GPU, Inc., a registered holding company, have filed an application under section 6(a), 7, 9(a) and 10 of the Act rule 54 under the Act. By orders dated August 15, 1991 (HCAR No. 25361) and October 25, 1995 (HCAR No. 26400) (together, ``Orders'') the Commission authorized JCP&L, Met-Ed and Penelec to, among other things, acquire an interest in nuclear fuel for Three Mile Island Unit 1 nuclear generating station (``TMI-1'') and the Oyster Creek nuclear generating station (``Oyster Creek''). The GPU Companies jointly own TMI-1 in the following percentages: Met-Ed--50%; JCP;L--25%; and Penelec--25%. JCP&L owns 100% of Oyster Creek. Under the Orders, a nuclear fuel trust was established to be the sole stockholder of two nonassociate corporations, TNI-1 Fuel Corporation and Oyster Creek Fuel Corporation (together, ``Fuel Companies''), which own nuclear fuel assemblies and component parts (``Nuclear Material'') for TMI-1 and Oyster Creek. The GPU Companies entered into separate lease agreements (``Existing Lease Agreements'') with the Fuel Companies to pay for the use of the Nuclear Material for TMI-1 and Oyster Creek. The Existing Lease Agreements provide for an initial term of up to 20 years, subject to early termination on the occurrence of certain events. Under the Existing Lease Agreements, each GPU Company pays to the lessor a monthly rental payment consisting of two components. The first is an amount based on the rate of nuclear fuel consumption. The second component, which is payable on the unamortized cost of the Nuclear Material, is based on the rates on outstanding notes or commercial paper issued by the Fuel Companies. The Fuel Companies' commercial paper credit is enhanced by the issuance by the Union Bank of Switzerland (``UBS'') of letters of credit (``LCs'') in an aggregate face amount of up to $210 million outstanding at any one time. Each Fuel Company has agreed to reimburse UBS for any drawings it makes under the LCs, in accordance with existing credit facilities between UBS and the Fuel Companies. The GPU Companies and the Fuel Companies have obtained a commitment for a new credit facility with The First National Bank of Chicago and PNC Bank, N.A. (``New Credit Facilities''). The New Credit Facilities provide for aggregate borrowings by the Fuel Companies of up to $190 million under a revolving note credit facility or through the sale of commercial paper. The GPU Companies now propose to amend the Existing Lease Agreements to conform its provisions with those of the New Credit Facilities. For the Commission, by the Division of Investment Management, under delegated authority. Margaret H. McFarland, Deputy Secretary. [FR Doc. 98-23852 Filed 9-3-98; 8:45 am] BILLING CODE 8010-01-M